Foreword
Alderman Ian Luder
List of Abbreviations
Glossary of terms
1 Carbonomics – The New World of Carbon Finance
Human Induced Climate Change is Real and Upon Us
Impact on the Finance Sector
Impact on the Insurance Sector
Carbon as a Future Asset Class
The Carbonomics Value Chain
2 Origination
Introduction
What is a Carbon Asset?
How Carbon Assets are Created (Through CDM and JI)
Risks in the CDM Market
Voluntary Carbon Market
Conclusion
3 Financing
Introduction: Mitigation and Adaptation
The Carbon Asset and Project Finance
Financing Clean Tech Through Venture Capital
Financing Adaptation
Conclusion
4 Structuring
Introduction
Carbon Facilities to Secure Carbon Assets
Carbon Purchasing Pools or Buyers Pools
The Growth of Carbon Funds
Fixed-Income Bonds
Catastrophe Bonds
Conclusion
5 Investing
Introduction
Role of Investor Groups and Reasons Why?
Investing in Solutions to Climate Change
Rise of “Green” Mutual Funds
Investing by Hedge Funds
Investing by Carbon Funds
Investing by Businesses and Corporations to Face the
Climate Challenge
Potential Business Opportunity
Concluding Remarks
6 Insuring
Introduction
Adaptation
Mitigation
Role of Insurance Industry in Managing Climate
Change Risks
Weather Related Risks and Instruments
Catastrophe Bonds
CDM Insurance for Carbon Credits
Conclusion
7 Trading
Introduction to Carbon Trading
International Accords for Carbon Trading
The EU Emissions Trading Scheme
Spot Trading versus Auctions
The Chicago Climate Exchange
Kyoto Protocol – Post-2012
Link between Carbon Price and Energy Commodities
Conclusion
8 Conclusion
Investment Opportunities in Climate Change